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Google Generic and Intensive Strategies

Generic and Intensive Growth Strategies Used by Google

 

Google is the number one search engine in the world. In a limited time, it has acquired the leadership position in the business world. Apart from being one of  the most valued companies, the brand is also known for technological innovation and has retained the lion’s share in online advertising. Google’s growth comes from its competitive advantage which arises from technological innovation. Technological innovation has brought google  to the position of the industry leader. The company has brought several innovative products apart from the fastest search engine. Michael E Porter has outlined three important strategies that  can help a company build a source of competitive advantage. These strategies are called generic strategies. They are : Cost leadership, differentiation and focus. The third one, he has  sub divided into two more categories –  cost focus and  differentiation  focus. Following is a discussion of the generic strategy used  by Google to build a  sustainable source of competitive advantage. Apart from that  it discusses the intensive growth strategies it has adopted to grow its market share and revenue.

 

Generic Strategy:

The generic strategy adopted by Google for building a  source of competitive advantage is that  of  differentiation. It involves differentiating your products and services from your competitors. the main service that Google is known for is its search engine. Compared to all the other search engines, Google’s is not just the fastest but also the smartest. Apart from the fastest search engine, Google  has brought  abroad array of products and services that  are meant for a broad target market made up of individuals, professionals and organizations. It has brought the Chrome browser and other several products and services including cloud based services and products for developers’ use. Google’s mission is to bring all the world’s information online. It aims to make internet an enriching experience. Most of its services can be availed of online. Its key source of revenue is online advertising and its share in this area is the biggest of all. In this way, through technological innovation, Google rules the web world and this is how it has  differentiated its products and services from its competitors. It has become synonymous to technological innovation. It has also proved through its exceptional management of the human capital that  it respects the worth of  their contribution. Google’s search engine and its algorithms are said to be far ahead of that of the competitors. So, Google’s competitive advantage is going to sustain. The reason is continuous focus on technological innovation.

 

Intensive Strategy:

Ansoff strategy highlights four intensive strategies that are market penetration, market development, product development and diversification. These strategies can be used by brands to grow their market share, sales and revenue. In the long term these strategies play an important role in  the growth of a brand and its market share. Below is a discussion of the strategies that  Google has sued to grow its market share.

Market penetration:

It is one of the most important strategies used by google. Google’s name has kept being popular and its search engine has grown most n popularity. with the use of its search engine its advertising market share also grew. In this way, as Google’s popularity rose and people started being familiar with its brand name,  the use of its products grew and thus Google has penetrated the market deeply. Particularly, in the Western markets where internet’s popularity grew first, Google was able to expand its market share faster. As popularity rose, product usage also rose. Now, billions use its products globally.

Market development:

This strategy involves entering new markets, targeting new market segments or new geographic regions. With time, Google’s market has continued to expand globally. while the product use rate was initially higher in the western nations, it grew with time across the globe. The popularity of internet and internet based services has kept rising and with it Google’s popularity and use across  the globe has also increased.

Product development:

This strategy involves the development and introduction of new products to grow the market share. Google has maintained a culture of  innovation. Over time, it has brought  abroad array of new and innovative products to the market. Fro search engine and browser to many other apps and services as well as android phones and other technological products, its product line has got immense variety.

Diversification:

This strategy includes diversifying into new areas of business to grow market share and sales. Google has diversified on a small scale into making android phones, watches and  chrome books. This kind of diversification has helped it generate extra revenue and reduced its reliance on Advertisement which is still the main source of revenue for Google.

This was a discussion of the generic and intensive strategies used by Google to generate competitive advantage and grow its market share.  Google has become a household name today and grown into one of the world’s most valuable companies. These strategies have played an important role in Google’s fast growth.

Written by Abhijeet Pratap

Abhijeet has been blogging on educational topics and business research since 2016. He graduated with a Hons. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers.

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